CONMED CORP (NYSE:CNMD) appears to be flying under the radar despite its strong fundamentals.

Our stock screening tool has pinpointed CONMED CORP (NYSE:CNMD) as an undervalued stock. CNMD maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding CNMD's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. CNMD has received a 7 out of 10:

• CNMD's Price/Earnings ratio is rather cheap when compared to the industry. CNMD is cheaper than 91.10% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.40. CNMD is valued rather cheaply when compared to this.
• 92.15% of the companies in the same industry are more expensive than CNMD, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, CNMD is valued a bit cheaper.
• CNMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNMD is cheaper than 92.15% of the companies in the same industry.
• 93.72% of the companies in the same industry are more expensive than CNMD, based on the Price/Free Cash Flow ratio.
• CNMD has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for CNMD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. CNMD scores a 8 out of 10:

• CNMD has a Return On Assets of 5.74%. This is amongst the best in the industry. CNMD outperforms 86.39% of its industry peers.
• CNMD has a better Return On Equity (13.76%) than 89.01% of its industry peers.
• The Return On Invested Capital of CNMD (8.33%) is better than 89.01% of its industry peers.
• The 3 year average ROIC (5.34%) for CNMD is below the current ROIC(8.33%), indicating increased profibility in the last year.
• CNMD's Profit Margin of 10.13% is amongst the best of the industry. CNMD outperforms 84.82% of its industry peers.
• CNMD's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 16.06%, CNMD belongs to the best of the industry, outperforming 86.91% of the companies in the same industry.
• In the last couple of years the Operating Margin of CNMD has grown nicely.

Assessing Health for CNMD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. CNMD has earned a 5 out of 10:

• CNMD's Altman-Z score of 2.21 is fine compared to the rest of the industry. CNMD outperforms 63.35% of its industry peers.
• CNMD has a better Debt to FCF ratio (5.89) than 78.01% of its industry peers.
• A Current Ratio of 2.30 indicates that CNMD has no problem at all paying its short term obligations.

A Closer Look at Growth for CNMD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. CNMD boasts a 5 out of 10:

• The Earnings Per Share has grown by an impressive 20.58% over the past year.
• Measured over the past years, CNMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.44% on average per year.
• The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of CNMD contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.